Multichain CEO Arrested: Company Shuts Down Operations
In a shocking turn of events, Multichain, a cross-chain protocol formerly known as Anyswap, has announced the shutdown of its services. This comes after the arrest of CEO Zhaojun by Chinese authorities and the subsequent issues faced by the team.
Key Points:
- CEO Zhaojun was taken away by the Chinese police on May 21 and has been out of contact with the Multichain team ever since.
- The team was unable to access funds as Zhaojun had sole control of the platform’s multi-party computation (MPC) node servers, which were now under police control.
- With limited funds, the protocol continued to function, but an unusual movement of funds worth over $125 million was discovered a month later.
- In an effort to preserve user funds, Zhaojun’s sister moved customer assets to wallets under her control, but Chinese police also took her into custody.
- Unable to access funds and facing a lack of alternative sources, Multichain has been forced to cease operations.
Hot Take:
The arrest of Multichain’s CEO and subsequent shutdown of operations highlights the fragility and vulnerability of decentralized protocols. This incident serves as a reminder of the risks involved in the world of cryptocurrencies and the importance of transparent governance and contingency plans.
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